Two companies back out in Ssangyong race
While the South Korean SUV major, Ssangyong motors has been in the news for the past many days mostly because of the names of the parties that have been very much interested in buying the target company but as the race is coming to an end, two firms have already backed out.
It has been learned from the sources in the industry that the South Korean private equity fund Seoul Invest and a group led by French carmaker Renault SA didn't submit bids by the deadline for a controlling stake in Ssangyong, which has been under court-led bankruptcy protection since early 2009.
While the Seoul Invest said it pulled out because of the size of Ssangyong's outstanding debts, the Group led by Renault has also confirmed that the company has submitted bid for the troubled company because of the high asking price.
However, the two companies i. e. M&M and Ruia Group have already submitted their final bids for Ssangyong.
While it is going to take a little more time as a South Korean court will now pick up the preferred buyer for the company, it is believed that the interested parties may look at expanding their presence in the region by buying the SUV maker.